How Fed will drive the USD and what to expect from the upcoming meetings

11.09.2019 / 01:31

Rating:

Markets seem unanimous to expect a very comfortable position - a 25 basis point drop in interest rates next Wednesday. Traders only assign a 4.5% chance of a 50 basis point decrease.

The greater intrigue, however, will be, as the central bank will signal for October. Currently, markets are almost 50/50 about whether or not FOMC will take a new turn. There is a slight advantage from the second rate cut by 58% against 42 for a break until December, when the chances are 81%.

However, according to Morgan Stanley, the Fed will not be enough enough to meet the expectations of market players.

"As a result, the dollar will launch during the day, especially against more risk-sensitive currencies such as emerging markets and other dollars."

Eventually, they believe that the strength of the dollar will subside as a strong currency means negative effects on the economy and the Fed will begin to lower rates more aggressively

Trader Aleksandar Kumanov

Read more:

RECCOMEND WAS THIS POST USEFUL FOR YOU?
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.

WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.

Varchev Finance

Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.

Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006

The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Disclaimer:

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

How Fed will drive the USD and what to expect from the upcoming meetings

London

Universal numbers